Mergers of small banks may hurt MSME sector: Report

"The disadvantages of big banks are that services are less personable and local people abstain from reaching out to them. There are more fees associated with bigger banks," said the report form Resurgent India.

Mergers of small banks may hurt credit sourcing for the MSME sector as the resultant large lenders will be less keen on smaller-sized loans, said a report from financial services firm Resurgent India. “The disadvantages of big banks are that services are less personable and local people abstain from reaching out to them. There are more fees associated with bigger banks. And, bigger banks are less motivated to work with MSMEs on loans due to smaller business accounts,” it said.